Life Insurance October 13, 2020

Most of the individuals who have a sound knowledge about the life insurance plans always check the death claim settlement ratio of the company. Claim Settlement Ratio is basically the percentage that tells the policyholder about the claims that were received by the company and the claims actually settled. A high claim settlement ratio denotes that the company has a good image for settling the life insurance claims. In this article, you can check the death claim settlement ratio of the life insurance companies that were in the year 2018-2019. Once you are aware of the ratios then it would be easy for you to choose the company.

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Death Claim Settlement Ratio of Life Insurers in 2018-19

All the above claim settlement ratios are as per the IRDA’s annual reports. High CSR means that the chances of settling a life insurance claim will be high.

Life Insurance CompaniesClaim Settlement Ratio
Tata AIA Life Insurance99.07%
HDFC Life Insurance99.04%
Max Life Insurance98.74%
ICICI Prudential Life Insurance98.58%
Life Insurance Corporation97.79%
Reliance Nippon Life Insurance97.71%
Kotak Life Insurance97.4%
Bharti Axa Life Insurance97.28%
Aditya Birla Sun Life Insurance97.15%
Exide Life Insurance97.03%
DHFL Pramerica96.8%
Star Union Daichi Life Insurance96.74%
Aegon Life Insurance96.45%
PNB MetLife Insurance96.21%
Aviva Life Insurance96.06%
Edelweiss Tokio Life Insurance95.82%
IDBI Federal Life Insurance95.79%
Future Generali Life Insurance95.16%
SBI Life Insurance95.03%
Bajaj Allianz Life Insurance95.01%
Canara HSBC OBC94.04%
India First Life Insurance92.82%
Sahara India Life Insurance90.16%
Shriram Life Insurance85.3%

Advantages of Claim Settlement Ratio

  1. The claim settlement ratio helps the insured to find the best company to take a life insurance plan.
  2. You will be able to know the risk management ability of the company from which you are taking the plan.
  3. CSR indicates how efficiently the insurer has implemented the necessary technologies.
  4. You will be able to under the number of claims that are usually settled by a company in a financial year,

Formula for the Claim Settlement Ratio

You must know the formula used for calculating the percentage of CSR. It will help you to understand the claims that are usually accepted and rejected by the life insurance company. The formula used for calculating the death claim settlement ratio is as follows:-

(Number of Claims Settled in a Year/ Number of Claims Made in a Year) X 100

You can use this formula to find out the exact CSR of the company.

How CSR Works

Suppose a life insurance company has a claim settlement ratio of 95% then it means that out of 100 claims made in a year only 95 claims were settled by the company. The remaining 5 claims are rejected by the company. You must always take a life insurance plan from the company that has the highest percentage of the claim settlement.

Conclusion

Well, you have the exact death claim settlement ratio of 24 different life insurers. These ratios are taken as per the annual report of 2018-2019 provided by the Insurance Regulatory and Development Authority of India. It will help you choose a better insurer for taking a life insurance plan.

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